Edcon business rescue practitioners oppose creditors' court bid to halt vital talks

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The law - and the need to urgently “rescue” Edcon to ward off a complete collapse of the retailing giant and huge job losses - stands against a legal bid by some creditors to stop meetings to be held on Monday to approve or reject the business rescue plan for the company

Edcon's business rescue practitioners are opposing a last-minute bid by some creditors to halt talks to save the retail giant from collapse.The law — and the need to urgently “rescue” Edcon to ward off a complete collapse of the retailing giant and huge job losses — stands against a legal bid by some creditors to stop meetings to be held on Monday to approve or reject the business rescue plan for the company.

Durban-based Kingsgate Clothing and Clematis Trading said in their application in the Pretoria high court, set down for hearing on Monday morning, that they are acting on behalf of at least 11 other companies.They say as concurrent creditors they are now being offered 4c in the rand after initially being assured they would get at least 50c.

In an opposing affidavit filed on Sunday, business rescue practitioner Lance Schapiro said the application was an abuse of court process, “an attempt to steal a march” and was littered with factual inaccuracies. “The total amount owed to Edcon’s creditors is about R8.1bn, comprising R3.8bn to secured creditors and R4.3bn to unsecured creditors.

 

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